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    MELISSA
    Avianca S.A is Colombia's leading commercial airline brand, representing the integrated airline brands of Avianca Holding S.A., characterized as a Panamanian company that operates domestic and international air operations. It is recommended to purchase Avianca stock by the end of 2017 as the company projects acquiring new fleets, increasing valuation and raising the stock price from $29,179 in 2016 to a projected $35,418 in 2017. Financial projections estimate gross and operating margins will remain positive through 2024, though profit margins are expected to gradually decline, indicating the company currently has a positive operation generating significant profits.

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    Close Price: 2. Recomendación

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    Avianca S.A is Colombia's leading commercial airline brand, representing the integrated airline brands of Avianca Holding S.A., characterized as a Panamanian company that operates domestic and international air operations. It is recommended to purchase Avianca stock by the end of 2017 as the company projects acquiring new fleets, increasing valuation and raising the stock price from $29,179 in 2016 to a projected $35,418 in 2017. Financial projections estimate gross and operating margins will remain positive through 2024, though profit margins are expected to gradually decline, indicating the company currently has a positive operation generating significant profits.

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    Avianca S.A is Colombia's leading commercial airline brand, representing the integrated airline brands of Avianca Holding S.A., characterized as a Panamanian company that operates domestic and international air operations. It is recommended to purchase Avianca stock by the end of 2017 as the company projects acquiring new fleets, increasing valuation and raising the stock price from $29,179 in 2016 to a projected $35,418 in 2017. Financial projections estimate gross and operating margins will remain positive through 2024, though profit margins are expected to gradually decline, indicating the company currently has a positive operation generating significant profits.

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    Download as PDF, TXT or read online from Scribd
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    19 views2 pages

    Close Price: 2. Recomendación

    Uploaded by

    MELISSA
    Avianca S.A is Colombia's leading commercial airline brand, representing the integrated airline brands of Avianca Holding S.A., characterized as a Panamanian company that operates domestic and international air operations. It is recommended to purchase Avianca stock by the end of 2017 as the company projects acquiring new fleets, increasing valuation and raising the stock price from $29,179 in 2016 to a projected $35,418 in 2017. Financial projections estimate gross and operating margins will remain positive through 2024, though profit margins are expected to gradually decline, indicating the company currently has a positive operation generating significant profits.

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    2.

    RECOMENDACIÓN

    Valuation Date 31/12/2017 Recommendation Comprar Stock Exchange New York Stock Market
    Current Price $ 29.179 Target Price $ 35.418 Sector Industrial
    Tiker AVH Upside 9,76% Industria Air Transportation

    CLOSE PRICE
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    01/05/2016
    01/06/2016
    01/07/2016
    01/08/2016
    01/09/2016
    01/10/2016
    01/11/2016
    01/12/2016
    01/01/2017
    01/02/2017
    01/03/2017
    01/04/2017
    01/05/2017
    01/06/2017
    01/07/2017
    01/08/2017
    01/09/2017
    01/10/2017
    01/11/2017
    01/12/2017
    Summary Valuation Results SUMMARY
    Expected equity return [% COP] 9,76% Avianca S.A es la marca comercial líder de
    Corporate cost of capital [% COP] 8,79% Colombia, que representa las marcas de
    Market capitalization (31/12/2017) Millions aerolíneas integradas de Avianca Holding
    COP Thousands of31.651.871
    Target price (31/12/2017) COP 35.417,8 S.A, caracterizada por ser una compañía
    Implicit valuation multiples Panameña, que realiza operaciones áreas
    EV 39.861.320 Nacionales e internacionales
    EBITDA 2.101.837
    EV/EBITDA 19,0 HIGHLIGHTS
    Revenue 9.071.242
    Se recomienda realizar la compra para
    EV/VENTAS 4,4
    finales del año 2017, debido a que la
    compañía proyecta adquirir nuevas flotas, lo que genera una mayor valoración de la
    misma, generando un alza en el precio de la acción en un 21%, pasando de ser de $ 29.179
    en el año 2016 a $35.418, que se estima será el precio del año 2017.
    Adicionalmente, como se muestra en las proyecciones, se estima que dicho precio
    aumente de manera progresiva cada año.
    Profitability ratios 2016 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F
    Gross margin 46% 46% 46% 46% 46% 46% 46% 46% 46%
    EBIT margin 7% 8% 7% 7% 8% 7% 7% 7% 7%
    EBITDA margin 13% 23% 27% 27% 27% 26% 26% 26% 26%
    Net Profit margin 2% 2% 1% 0% 0% 0% 0% -1% -1%
    ROA 1% 1% 0% 0% 0% 0% 0% 0% 0%
    ROE 12% 3% 1% 1% 1% 0% -2% -5% -6%

    Con las proyecciones realizadas hasta el año 2024, se espera que el margen bruto sea igual
    positivo e igual a un 46% para todos los años, teniendo en cuenta que este margen está
    establecido desde el año 2016. En cuento al margen operativo, se puede observar que es
    positivo y creciente, debido a que uno de los objetivos de la compañía es aumentas las
    ventas y disminuir los gastos. A nivel general, la compañía posee una operación positiva, ya
    que esta le genera grandes utilidades.

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